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Chinese regulator on Thursday warns of risks stemming from bad loans in the banking sector, after it said earlier this month that lenders may face a sharp rebound in bad loans due to coronavirus-induced economic pain.
"We should always make sure no systemic financial risks will occur and make advance arrangement to deal with significantly increase in non-performing loans (NPLs) in the banking sector," said the China Banking and Regulatory Commission (CBIRC) in a statement on Thursday.
Banks should strictly categorise asset class, improving profits, increase bad loan provisions, replenish capital and strengthen . . .
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